Support for Small Businesses
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided more than $376 billion in aid and relief to workers and small businesses under economic stress from the COVID-19 pandemic. The Paycheck Protection Program and Health Care Enhancement Act extended support for small businesses under the CARES Act for the Paycheck Protection Program and Emergency Economic Injury and Disaster Loan Grants. The Paycheck Protection Program Flexibility Act of 2020 and recently passed COVID-19 relief legislation modified some of the central provisions to the Paycheck Protection Program (PPP), allowing more flexibility for borrowers.
- Current law dictates that the Paycheck Protection Program (PPP) close at the end of August 8, 2020. As such, SBA is no longer accepting PPP applications from participating lenders. Learn more here.
Paycheck Protection Program’s Loan Forgiveness
- If used for certain costs, the loan provided through the Paycheck Protection Program will be eligible for loan forgiveness.
- Specifically—if the employer maintains its payroll—then the portion of the loan used to cover (1) payroll costs, (2) interest on mortgage obligations, (3) rent, and (4) utilities would be forgiven.
- The CARES Act provided funding for grants to SBA resource partners, including Small Business Development Centers and Women’s Business Centers, to offer counseling, training, and related assistance to small businesses affected by COVID-19.
- Funds will also be provided for the Minority Business Development Agency to provide these services through Minority Business Centers and Minority Chambers of Commerce.
- These grants provide support for small businesses and nonprofits impacted experiencing a loss of revenue due to COVID-19.
- The advance does not need to be repaid under any circumstance and may be used to keep employees on the payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions or pay business obligations, including debts, rent and mortgage payments.
- Find answers to your questions about the EIDL program here.
- This program allows small business owners to quickly access SBA-guaranteed financing while awaiting long-term financing.
- Learn more about the program and how to apply here.
- This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans.
- Under the program, SBA will cover all loan payments on loans, including the principal, interest, and fees, for six months.
Don’t see an answer to your question? You can read more here or contact my Palm Desert Office at (760) 424-8888.